90% of A-share game companies made profits in the first half of the year, and their mobile business received attention

Among the 49 A-share listed companies with game businesses, nearly 90% achieved different amounts of net profit in the first half of this year, and only 5 companies suffered losses in the first half of this year.

Original title: 49 A-share game companies made good profits in the first half of the year, multi-screen interaction has become a trend.

With the end of the financial reports of listed companies in the first half of this year, all A-share industries have ushered in opportunities to gain a glimpse of performance and industry development.

According to data, among the 49 A-share listed companies with game businesses, nearly 90% achieved different amounts of net profit in the first half of this year, and only 5 companies suffered losses in the first half of this year. With the overall performance of the industry improving, some companies have launched high-transfer plans. For example, Century Cruises announced that it plans to increase 20 shares for every 10 shares; Tianrun Digital Entertainment plans to increase 30 shares for every 10 shares.

However, from the year-on-year increase and decrease in gross profit margin and the comparison between gross profit margin and net profit margin, we can see that many companies with game business in the A-share market have high operating costs, which has damaged the company's net profit. In addition, in order to expand their business, these companies have unanimously chosen to extend their businesses to various ports of the industrial chain, conduct "multi-screen interactions", and enter new technology fields, such as VR and AR, through investment and use of their M & A fund holdings, etc.

Games to small screens mobile game business is valued

overall. Among the 49 listed companies, a total of 36 companies have net profit attributable to shareholders of listed companies that increased to varying degrees year-on-year. The net profit of the remaining companies was reported in the first half of this year. It is positive or a loss, but there are varying degrees of decline year-on-year.

Among the 36 companies with year-on-year growth in net profit, although most companies attributed the growth in performance to the improvement of the industry and business development meeting expectations, there were also some companies whose performance increased significantly year-on-year due to the completion of restructuring during the reporting period, such as Century Cruises. The company completed its reorganization during the reporting period and became a company mainly focusing on Internet games and Internet community services.

No matter what way they enter the game field, we can see from the explanations of these A-share listed companies in their first-half financial reports that some obvious changes have taken place in the game industry: mobility, increased competition, and multi-screen interaction.

Century Cruises said that since the second half of last year, the company has begun transformation and product structure adjustment, and has begun to implement the "mobile game" research and development strategy, and its operating model has begun to change. It can be seen from the company's main business composition table that although Century Cruises 'computer-side online games were still the bulk of operating income in the first half of this year, the operating income of mobile online games is gradually increasing, and it can also be seen from the operating costs. It can be seen that the cost of mobile online games has decreased significantly compared with the same period last year, and the gross profit margin has increased.

Also having high hopes for the mobile game business is Tianshen Entertainment. Tianshen Entertainment said that in the first half of this year, under the leadership of the management team, the company continued to work intensively and complied with the development laws of the market and users. While maintaining stable growth in endogenous online game R & D, distribution, platform and advertising businesses, it actively focused on development strategies, accelerating the company's expansion into upstream and downstream fields of online games through investment, shareholding, mergers and acquisitions. At the same time, the company is stepping up its strategic layout in related fields such as mobile Internet, overseas Internet, film and television entertainment, etc., laying a solid foundation for rapid growth in future performance.

Tenshen Entertainment attaches great importance to mobile terminals. It can also be seen from the detailed data of its main business. In the first half of this year, the company's web game revenue decreased by 44% year-on-year, while mobile game revenue increased by 637.41%.

In addition to focusing on mobile services, high-ranking companies are "multi-screen interaction"

. In addition to focusing on mobile services, they are expanding their industrial chains as much as possible and implementing the "multi-screen development" strategy. This is also one of the commonalities of these companies.

Oriental Pearl, which has previously completed the merger with BesTV, said that by integrating the resources of Shanghai Media and Media Group (SMG) and relying on the complete industrial chain layout and the integrated advantages of full license and omni-channel operations, it has continuously strengthened the comprehensive competitiveness of content and expanded online and offline multi-channel layout. Optimize product user experience, and once again become one of the top 30 cultural companies in China. In the first half of the year, the company achieved operating income of 9.511 billion yuan, an increase of 8.3% compared with the same period last year after excluding factors such as real estate sales and transfers, and Fengxing website consolidation; it achieved a net profit of 1.279 billion yuan attributable to the parent company. After excluding the above factors, it increased by 13.6% compared with the same period last year. In terms of content production aggregation, thanks to the release of films such as "Sherlock", the revenue from the film business increased significantly in the first half of the year. In the second half of the year, there were also "We were Born in China","21 Carats","Ocean of Fire","Love at the Corner","Dating and Love" and other film and television dramas were launched one after another to achieve revenue confirmation. In addition, the company leverages the coverage advantages of the entire industry chain, gathers a large amount of high-quality and high-quality content, focuses on large IPs, strengthens the linkage between film and television content production and game business, and actively promotes "Final Fantasy 15" and other movie and game linkage projects.

Also offering "multi-screen interaction" is Perfect World. The company believes that in the first half of the year, the domestic cultural industry policy environment has been continuously optimized, mass consumption concepts have been upgraded, the industrial chain has become more complete, and the Internet has been optimized and integrated in the allocation of production factor resources. The role has become increasingly prominent, and the development model with IP as the main line and the "pan-entertainment" concept as the guide has become the mainstream of the cultural industry.

Based on this, in terms of film and television business, Perfect World continues to steadily develop the TV drama business, vigorously develops the film business, actively expands the variety column business, develops artist brokerage, business implantation and other businesses in a timely manner, and gradually improves the company's industrial chain; in the field of capital operation, The company successfully injected the game assets of major shareholders into the listed company by issuing shares to purchase assets, forming a "movie-game" linkage advantage; At the same time, the company seized market opportunities and expanded its global film business through capital operations such as setting up film and television investment funds and cooperation with Universal Pictures of the United States.

The gross profit margin of eight companies exceeds 50% and the net profit is less than 20%

. Under various measures such as business expansion, mergers and acquisitions, and development into the pan-entertainment field, the operating costs of many companies have increased accordingly.

Judging from the data display, in the first half of this year, the gross profit margin of the game business was still very impressive, with more than 60% everywhere. However, from the comparison of gross profit margin and net profit margin, it can be seen that some companies The operating costs are very high.

Data shows that there are currently 25 companies with gross profit margins exceeding 50%, but among these 25 companies, 8 companies have net profit margins of less than 20%, and the lowest company has a net profit margin of only 4%.

However, from a specific perspective, these companies with low net profit margins also have their own "difficulties".

Zhongqingbao's financial report for the first half of this year mentioned that the company is currently in a period of alternating between the old and the new. The company's new games are in the early stages of development and promotion. No large-scale promotion activities have been carried out in the first half of the year and have not yet begun to produce benefits. In addition, in 2016, Zhongqingbao officially launched a strategic upgrade from games to pan-entertainment platforms. The company insists on improving the profitability of various businesses. By optimizing and improving its own business, the company builds a corporate ecosystem through multi-point layout, ultimately achieving important strategic transformation and upgrading and maximizing shareholder interests. During the reporting period, the company achieved operating income of 118.7931 million yuan, a year-on-year decrease of 23.10%; achieved total profit of 6.6189 million yuan, a year-on-year decrease of 9.59%; and achieved net profit attributable to shareholders of listed companies of 4.1446 million yuan, a year-on-year decrease of 68.72%.

Although the gross profit margin of Tianrun Digital Entertainment's game products is as high as 97.85%, this year is the first year of the company's industrial transformation. During this reporting period, the company's non-public offering of shares to purchase assets was officially approved by the China Securities Regulatory Commission to purchase Shanghai Diananle Information Technology Co., Ltd. The transfer procedures were officially completed in April 2016. Shanghai Diananle Information Technology Co., Ltd. became a wholly-owned subsidiary of Tianrun Digital Entertainment. The company has officially transformed into a mobile online game R & D and operation business industry, and the company's industrial transformation has been successful. However, during the reporting period, in addition to the game business, the company still had consolidated results in the rental services industry.

Editor: Nancy